Business Commons^™

An Extension Of The Theory Of Technology Dominance: Capturing The Underlying Causal Complexity, Steve G. Sutton, Vicky Arnold, Matthew Holt

Accounting Faculty Publications

The Theory of Technology Dominance (TTD) provides a theoretical foundation for understanding how intelligent systems impact human decision-making. The theory has three phases with propositions related to (1) the foundations of reliance, (2) short-term effects on novice versus expert decision-making, and (3) long-term epistemological effects related to individual deskilling and profession-wide stagnation. In this theory paper, we propose an extension of TTD, that we refer to as TTD2, primarily to increase our theoretical understanding of how, why, and when the short-term and long-term effects on decision-making occur and why advances in technology design have exacerbated some weaknesses and eroded some …

Tax Planning Under The Inflation Reduction Act Of 2022, Martin A. Goldberg, James N. Mohs

Accounting Faculty Publications

The Inflation Reduction Act of2022 (the "Act"), signed by President Biden on 8/16/2022, contained an array of tax provisions that should be considered in tax planning for clients.

The Act is a budget reconciliation bill whose origins can be traced back to the American Rescue Plan Act of2021, as well as the American Jobs Plan (AJP) and the American Families Plan (AFP). Each plan contained aspects of tax incentives for green energy construction, conservation, and infrastructure improvements, as well as for healthcare benefits. What we see in the Act is the last iteration of these developing tax incentives.

The Act …

Planning Strategies Under Recent Tax Law Changes, Martin A. Goldberg, James N. Mohs

Accounting Faculty Publications

In the days when it was more common to see major stand-alone tax reform legislation, practitioners would devote large amounts of time to understanding tax law changes and formulating how these changes affected tax planning strategies. Now that we often see tax law changes peppered piecemeal into larger pieces of legislation, they often go under the radar. This means that tax planning opportunities may be missed.

Tax law changes that have appeared in just the past year provide numerous instances of tax planning strategies that warrant attention.

Expanded Tax Incentives For Energy-Efficient Construction And Improvements, Martin A. Goldberg, James N. Mohs

Accounting Faculty Publications

The Inflation Reduction Act of 2022 (the Act), included an array of tax-law changes that may not have gotten the attention they deserve.

There are several reasons why for many these changes may have been under the radar. First, as part of a much larger legislative package, much of the attention has been given to the ongoing political debates rather than individual provisions. In fact, the Act is part of a larger political saga. It's a scaled-down version, and immediate successor, to the Build Back Better Act which passed in the House of Representatives in 2021 but failed to pass …

Current Trends In Corporate Tax Inversions, James N. Mohs, Martin A. Goldberg, Rajendra Shrestha

Accounting Faculty Publications

The objective of this paper is to describe how changes in corporate tax rates affect the relocation of Corporations to lower tax jurisdictions. Historically, there was a direct correlation between high tax rates and the relocation of Corporations to lower tax jurisdictions. By further examining the relationships that tax rate cuts may have on future onshoring relocations and how changes in government tax policies will affect the relocation of multinational corporations to avoid or minimize tax liabilities. This paper extends the work of Mohs, Goldberg, Butler, and Heath (2016), which noted that there is a correlation between divergent tax rates. …

Accounting Reporting Complexity, Audit Engagement Partner Mandatory Rotation, And Audit Quality, Clement Chen, Zhenfeng Liu, Wenye Tang, Ling Tuo

Accounting Faculty Publications

This paper investigates the influence of a firm's accounting reporting complexity (ARC) on financial statement audit quality. We predict and find that there is a non‐linear relationship between a firm's ARC and audit quality. Specifically, a more complex accounting environment—measured by ARC—leads to higher quality audits, but this effect diminishes when ARC continues to increase. Further analyses reveal that the effect is more salient among client firms that do not purchase non‐audit services (NAS). We also examine whether ARC affects audit quality in the circumstance of mandatory audit partner rotation. Empirical results show a moderating effect of ARC on the …